Key Man Life Insurance Explained for Business Owners

[@photographybya7602]

It’s impressive to see someone so young provide such a compelling presentation on a lesser-known insurance product. Well done!

[@TheMoneyAdvantage]

Thank you for the kind words!

[@erickposada7684]

Great explanation. I'm an agent with New York Life and that is why I always tell business owners.

[@TheMoneyAdvantage]

Thank you for the kind words! So glad you found it valuable!

[@kriskris5989]

Are the premiums paid from the business for the key person life insurance policy , tax deductible/PreTax dollars? Can these premium be written off for taxes?

[@TheMoneyAdvantage]

Thank you for watching! Because the death benefit would be income tax-free to your business, the premiums you pay are not tax-deductible. themoneyadvantage.com/key-man-insurance-protecting-your-business-profits-and-livelihood/#h-how-a-key-man-insurance-policy-is-taxed

[@kriskris5989]

@@TheMoneyAdvantage thanks for your response,i am reviewing the link you sent me

[@SapphireSweed]

Do you use IBC structure for your key person policies? I'm an agent and have been researching these policies without much info on how to build these policies, as well as buy/ sells. Thanks

[@TheMoneyAdvantage]

Thank you for asking! Yes, it is another way to get more than 1 use of the same money. It is not a one-size fits all, as each policy is tailored to each unique situation.

[@MelissaGardnerRealtor]

What the employee works at a new company and the employer never changed the policy and the employee dies at the new job?

[@TheMoneyAdvantage]

Thank you for watching! Whoever is named as the beneficiary of the contract would be paid the death benefit. Life insurance policies are contracts.

[@Michelle340373]

Thank you for sharing. The information is very useful.

[@TheMoneyAdvantage]

Glad it was helpful! Thank you for watching!

[@reoman8179]

as a business owner can you set this up for a 1099 employee? also can a business pay for the premium for tax write off?

[@TheMoneyAdvantage]

Thank you for watching! I would say generally now 1099 contractors are not insurable, however there could be rare exceptions, which would require convincing the insurance company that there are not readily available replacements as most 1099 contractors would be considered. When your key person passes away, the insurance payoff will infuse your business with capital (income tax-free in most cases) to cover costs and help you remain afloat. And because the death benefit would be income tax-free to your business, the premiums you pay wouldn’t be tax-deductible.

[@huwannnnnnn]

MDRT secured ❤

[@TheMoneyAdvantage]

Thank you for watching!

[@anthonyrogers6469]

How can I contact you for more info?

[@TheMoneyAdvantage]

Thank you for commenting! If you go to our website (themoneyadvantage.com/) you can find out more and book an appointment on our calendar when you are ready to talk with someone! You can also get our Privatized Banking guide here: privatizedbankingsecrets.com/freeguide

[@dantemiller1069]

Does the "Key" employee know their boss have them on the policy? If not; Then this is VERY dangerous.

[@TheMoneyAdvantage]

Thanks for watching. Yes the key employee would need to know and provide written consent.